Navistar Electric issued 1000 debenture bonds 8 years ago with a face value of $5,000 each and a bond interest rate of 12% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond. The present worth of one bond today is $[

Q.4. Subject  :- Economic

Assume that 25 years ago your dad invested $260,000, plus $32,000 in Year 2 through 5, and $49,000 per year from Year 6 through Year 25. The annual retirement amount he can withdraw forever starting next year (Year 26), if the interest rate is 12% per year, is nearest to: $1,320,000 $1,131,000 $2,005,500 $1,009,000

For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company C wants to start saving money for replacement of network servers. If the company invests $100,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 10% per year?

A 20-year-old student decided to set aside $100 on his 21st birthday for investment. Each subsequent year through his 55th birthday, he plans to increase the investment on a $100 arithmetic gradient. He will not set aside additional money after his 55th birthday. If the student can achieve an 8% rate of return, what is the future worth of the investments on his 65th birthday?